Investors lose Rs 2.3 lakh crore as bears rule D-St for second day
The rise in bond yields is becoming a concern for investors as they see foreign investors pulling funds out of India. However, most analysts are still bullish on domestic equities in the medium term.
The 30-share pack Sensex dropped 440.76 points or 0.87 per cent to close at 50,405.32. Its broader peer NSE Nifty declined 142.65 points or 0.95 per cent to 14,938.10.
Investors lost Rs 2.26 lakh crore as the market capitalisation of BSE-listed companies dropped to Rs 207.33 lakh crore.
“Domestic markets echoed the global sentiments led by consolidation in the global market. Confusion persists in the global market ahead of the Fed policy meet, as the market expects confirmation on maintaining its super accommodative stance in a rising bond yield market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
- Fear India VIX, barometer of volatility, spikes for the second day, up 6%
- Heranba Industries gains 30% over issue price on its debut
- IPO watch: MTAR Technologies subscribed 193.38 times so far
- Broader markets perform worse than headline peers, Nifty Midcap down 2%
- Stock@52-week highs: ACC, Ambuja Cements, DMart, Grasim, UltraTech Cement and Vedanta among top names
Among blue-chip stocks, ONGC was the top gainer, rising 2.40 per cent. GAIL, Maruti Suzuki, Kotak Bank, Hero MotoCorp, Nestle India, UltraTech Cement and HUL were other gainers.
IndusInd Bank was the top loser in the Nifty pack, falling 4.48 per cent. Wipro, Tata Motors, UPL, Tata Steel, Hindalco, Shree Cement, SBI, Dr Reddy’s Labs and Power Grid were others that ended in the red.
“In the absence of any major domestic trigger, Indian markets could take cues from global developments and US markets. The tone of the market seems to be on the downside for now.”
Broader market indices also ended with cuts and underperformed their headline peers. Nifty Smallcap dipped 1.55 per cent and Nifty Midcap slipped 2.15 per cent. Nifty 500 — the broadest index on NSE — dropped 1.18 per cent.
Emami, V-Guard, Crompton Greaves Consumer Electricals, CSB Bank, TV18 Broadcast and Indiabulls Real Estate were top gainers from the mid- and small-cap indices, climbing in the range of 2-8 per cent.
Aegis Chemicals, Rain Industries, Laurus Labs, Apollo Tyres, National Aluminium Company and Apollo Hospitals were major losers from broader market space, falling in the range of 4-7 per cent.
All sectoral indices closed with cuts. Nifty PSU Bank was the biggest loser, down 3.93 per cent. Nifty Metal, Nifty Private Bank and Nifty IT were other major losers. Nifty Media was the least affected, but still fell 0.86 per cent.
